Pick and Pack Cost Calculator

Calculate warehouse pick-and-pack labor expenses per order based on hourly wages, labor tax burdens, pick duration, and packaging materials.

Internal Pick & Pack Benchmark
Total Pick & Pack / Order
$2.82
Labor Rate / Minute
$0.37 / min
Monthly Fulfillment Spend
$2,252.00
Monthly Labor Hours
60.0 hrs

Pick and Pack Cost Formula

Labor Rate/Min = [Hourly Wage × (1 + Burden %)] / 60; Total Cost = [(Pick Mins + Pack Mins) × Labor/Min] + Materials
  • Fully Burdened Wage: Base warehouse hourly wage plus 18% to 25% for employer payroll taxes, workers comp, and benefits.
  • Pick Minutes: Walking warehouse aisles, scanning barcodes, and placing items in order totes.
  • Pack Minutes: Box assembly, item insertion, dunnage cushioning, tape sealing, and label application.
  • Materials: Direct packaging box and filler costs.

Step-by-Step Worked Example

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Calculation Steps:

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    How to Use This Calculator

      Assumptions & Limitations

      • Labor burden includes employer FICA, FUTA, SUTA, and workers compensation insurance.
      • Assumes barcode scanner verification to minimize picking error rates.

      Frequently Asked Questions

      What is the average pick and pack time for an e-commerce order?

      In an organized warehouse with barcode picking, single-item orders take 1.5 to 3 minutes, while multi-item apparel or cosmetics orders take 3 to 6 minutes.

      Is it cheaper to do pick-and-pack in-house or hire a 3PL?

      Under 300 orders/month, in-house founder fulfillment is cheaper. Between 300 and 3,000 orders/month, 3PLs often provide lower costs through bulk carrier postage discounts and flexible hourly labor.

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